Growing OpportunityConclusions & Next Steps‘We need <strong>to</strong> be brokeringrelationships now in thesocial enterprise/businessinterface. Currently muchof this is done around causemarketing, but we needmore guides who canidentify possible partnersand take entrepreneursthrough the courtshipneeded <strong>to</strong> create realpartnerships of broad value.’Anonymous respondent118www.acciona.es119www.vestas.com— On the other side of the coin, theproportion of those expecting <strong>to</strong> befunding their own operations, with littleor no dependence on grants jumped from8% <strong>to</strong> 28%. Many still expect <strong>to</strong> rely ona mix of funding types, but a significantproportion (up from 38% <strong>to</strong>day <strong>to</strong> 50%in five years) expect a substantialrebalancing in the coming years.Other growing pains— Linked <strong>to</strong> the funding challenges, manyentrepreneurs noted the problems theyface in offering competitive salaries <strong>to</strong>staff — with professional staff, in turn,often a key <strong>to</strong> attracting sufficientfunding.— As these social enterprises grow, theyincreasingly face a tension between theneed for professionalism and efficiencyon the one hand and, on the other, theneed <strong>to</strong> maintain a focus on the mission,values and culture of the organization.— Succession planning is another areaof difficulty. The entrepreneurs themselvesare very aware that for theirorganizations <strong>to</strong> succeed, they themselvesneed <strong>to</strong> change. This is true evenof the most successful entrepreneurs.Bill Strickland of the Bidwell TrainingCenter Inc. (BTC), a Pittsburgh-basedorganization for urban change, oncesaid that the biggest barrier <strong>to</strong> hisorganization growing was him.— Novelty is an enormous strength, butlike so many traits could also becomea weakness. Many others have beentackling the challenges social entrepreneursare dealing with, at othertimes, in other places, in differentways. There is a danger that in theirenthusiasm <strong>to</strong> embrace — and berewarded for developing — radical newsolutions that a number of new wheelsare unnecessarily invented.Partnering with business— Social and cleantech entrepreneursturn out <strong>to</strong> be equally interested indeveloping partnerships with business,but with different expectations.Social entrepreneurs, in particular,are acutely aware that they often lackthe experience and skills needed.— A constant refrain in the interviewswas the growing need for brokeringbetween the entrepreneurs and thosethey need <strong>to</strong> persuade or recruit.46— ‘We need <strong>to</strong> be brokering relationshipsnow in the social enterprise/businessinterface,’ said one interviewee.‘Currently much of this is done aroundcause marketing, but we need moreguides who can identify possible partnersand take entrepreneurs through thecourtship needed <strong>to</strong> create realpartnerships of broad value. So manyindustries have matchmakers — whereare they in this sec<strong>to</strong>r, beyond what hasbeen called the in-club of white malesocial entrepreneurs?’— There is a risk in all of this that webecome overly focused on narrowdefinitions of social entrepreneurship.For example, it’s easy <strong>to</strong> get excitedabout small start-ups in the renewableenergy field, but we should rememberthe huge contributions already beingmade by much larger companies likeAcciona 118 in Spain, Vestas 119 basedin Denmark, or GE based in the USA.— Listen <strong>to</strong> José Manuel Entrecanales,Acciona’s Chairman and a Spanishbusinessman with big ambitions insustainable energy. We asked whetherthis ambition would require trade-offs?‘No,’ he replied. ‘Mainstream businessesmust deliver shareholder value. ButAcciona has significantly increased itssustainability profile and investment inareas like renewable energy in recentyears, while recording substantial growthand exceptional shareholder value.For example, in 2005 our use ofrenewable energy sources avoided theemission of 4.5 million <strong>to</strong>nnes of CO 2 .I believe that there may be opportunitiesfor a forward-thinking energy player <strong>to</strong>create small-scale village-basedrenewable energy provision which trulybreaks the mould.’‘Indeed I see interesting parallelsbetween the provision of energy <strong>to</strong> theseareas and the situation in commercialcredit two decades ago which led NobelPrize winner Professor Yunus <strong>to</strong> setup the Grameen micro-credit system.The application of a decentralised,bot<strong>to</strong>m-up approach <strong>to</strong> providingelectricity <strong>to</strong> remote or impoverishedareas is one we have been longinterested in at Acciona. It is one ourteam is currently exploring, knowingwell that there are situations andlocations where the provision ofclean and sustainable energy will notbe commercially viable. That is why weare currently fundraising for projectswhich may not prove profitable in theimmediate future. We welcome dialoguewith NGOs and others who share ourvision.’
Growing OpportunityConclusions & Next Steps‘Over the last 25 years,the citizen sec<strong>to</strong>r hasbecome as entrepreneurialstructurally as business inmost of the world — and,as a result, it has beenclosing the productivitygap with business veryrapidly. We now have theopportunity <strong>to</strong> end theaccidental divorce of thelast three centuries. Doingso represents a giganticproductivity opportunityfor business, for the citizensec<strong>to</strong>r, and for the ultimatecus<strong>to</strong>mer and citizen.’Bill Dray<strong>to</strong>n, Ashoka120www.iese.edu/research/pdfs/op-04-16-e.pdf121www.accenture.com/global/about_accenture/company_overview/corporate_citizenship/philanthropy/accenturepartnerships.htm122www.schwabfound.org/docs/web/linklaters_schwab_report.pdf123www.wikipedia.orgDon’t forget the social intrapreneur— Several interviewees also noted thatwe need <strong>to</strong> recall the potential of socialintrapreneurship, 120 with change agentsworking inside big organizations <strong>to</strong> drivesimilar agendas. One example of a socialintrapreneur we interviewed was GibBulloch, Programme Lead at AccentureDevelopment Partnerships. 121 He hasbeen part of a team for nearly five yearsthat has been working <strong>to</strong> switch thismajor consulting firm on <strong>to</strong> the potential<strong>to</strong> help NGOs, social entrepreneurs,and major businesses <strong>to</strong> understandand manage the world’s great social,environmental, and governancechallenges.— Many people still see such effortsas part of corporate citizenship.This, as Bulloch puts it, means thatthey think ‘in terms of groomingdonkeys, sponsoring the opera or, atbest, painting schools. Rather than,say, helping Oxfam <strong>to</strong> become a highperformance organization.’ In the contex<strong>to</strong>f Accenture’s 145,000 employeesworldwide, ADP’s 70-going-on-100 mayseem small beer, but the potential <strong>to</strong>catalyze change — both inside Accentureand among its clients — is considerable.— The key point, however, is that oneway of achieving scale with entrepreneurialsolutions is <strong>to</strong> switch largeorganizations on<strong>to</strong> the new challengesand exploit their much greater leverage<strong>to</strong> further evolve and deploy thesolutions.A growing need <strong>to</strong> focus on governmentresponsibilities and roles— Governments need <strong>to</strong> do more <strong>to</strong> shapepublic policy, public sec<strong>to</strong>r targets andwider incentives — for example, inrelation <strong>to</strong> tax breaks for the funding ofsocial enterprise — if the sort of venturescovered above are <strong>to</strong> reach their fullpotential. This is an area that has beencovered by people like Linklaters, 122 butwhere considerable further thinking —and action — is needed.Panel 6.2Next stepsAmong the next steps planned forSustainAbility’s Skoll program are thefollowing:— Skoll World Forum 2007We will present the results of thisfirst survey, and also test some ofour conclusions for the health sec<strong>to</strong>rin a dedicated session.— FeedbackWe will send the final report <strong>to</strong> allthose who <strong>to</strong>ok part, inviting theircomment. This will be used <strong>to</strong> shapefurther projects.— Roundtables and workshopsDuring 2007–08, we will organizeroundtables and workshops <strong>to</strong>debate, evolve, and communicatethe conclusions.47— Further deep/deeper divesWe aim <strong>to</strong> conduct at least two furtherexplorations in<strong>to</strong> our target sec<strong>to</strong>rsduring the coming 12 months.— Explore potential for developing‘Wiki-Manual’Given the interest in understandinghow <strong>to</strong> develop partnerships withmainstream business and otherpartners, we will consider developingeither a published Manual or evenan online manual along the linesof Wikipedia 123 on related themes.— BrokeringFurther develop our thinking, and over12–18 months, our offerings in thisarea.— Capital flowsInvestigate ways <strong>to</strong> increase the capitalflows in<strong>to</strong> the social enterprise space.— 2008 surveyTest themes for the next survey.